How to Get a General Trading License in UAE?
The procedure for applying for a general trading license in UAE is well-formulated and straightforward. It will be better if you have all the documents ready in advance, according to the stipulated standards. That will make your process easy and hassle-free.
For your understanding, we have explained each of the steps here:
Step 1. Finalize the Products and Field of Business
You can choose up to 10 products for trading under a general trading license in Dubai. Be cautious to select the authorized items only. The regulated items, viz. medical products, weapons, frozen food items, alcohol etcetera should not be included in the application for the license. A few of the authority-regulated items are allowed, however, you have to put up a separate request for the same to DED. The said items can be included after gaining written approvals.
Step 2. Trade Name for the Entity
The authorities will issue approvals on the name of the entity. Hence, a trading name must be finalized before commencing the process. It must be noted that the trade name/ name of the organization must be according to the laid down regulations. The trade name should not reflect political perceptions or religious references. The initial approval of the trade name is essential for forwarding the process.
Step 3. Select the Jurisdiction
You can opt for the jurisdiction for a general trade license in Dubai, viz. Mainland, Free Zone, or Offshore. General trading license in Dubai Mainland will be a better choice than the remaining two. As it permits you to trade anywhere in the country without any limitations. Thereby, ensuring optimal reach, which is advantageous for creating new markets and generating more sales.
Step 4. Complete the Process for Initial Approval
You have to submit the application along with requisite documents to concerned authorities for initial approval. The DED will provide initial approval in conjunction with the Ministry of Economy and Commerce of the UAE. You can go ahead with the remaining process, once the DED perused the documents and provides initial approval.
Step 5. Formulate a Legal Structure
The legal structure of the entity must be prepared according to the existing regulations and rules. The Article of Association (AOA), Memorandum of Association (MOA), and other documents laying out the company’s policies, structure, shareholders, and other activities must be prepared.
Step 6. Office Space and Commercial Space
Renting or leasing of office space and commercial space, with the specific dimensions, must be completed. The tenancy contract has to be attested by Ejari, the online registration system commenced by the Real Estate Regulatory Authority (RERA). The subject document has to be attached to the application for the final license. The attestation by Ejari ensures the prevention of disputes between the owner and the tenant.
Step 7. Apply for Final License
Once you have accomplished all the above-mentioned formalities, you can apply for a final license. Submit the application along with the specified documents to DED for a general trading license in Dubai. The DED will examine the application, documents, certificates, and approvals and issue a general trading license to commence business operations.
Step 8. External Approvals, Custom Clearances
Commencing business operations in Dubai will entail approvals from the custom department if you are importing goods and approvals from other agencies as required. Support from an experienced professional business setup service in Dubai will help you for processing the general trading license formalities easily. They will take the burden off you and process the request on behalf of you. Thereby, you can concentrate on other business activities and plan to grow your business.
Documents to be Submitted for General Trading License
Documents, certificates, and statements are to be submitted to the authorities for a general trading license. The documents include the following:
- Application for approval signed by the owner authorized signatories or legal representatives
- Memorandum of Association
- Article of Association
- Approval from DED concerning the trade name
- Passport copies of the owner, managing partners/ director board
- Tenancy certificate attested by Ejari
- Other approvals and documents as sought by the DED
What is the Cost to Obtain a General Trading License in UAE?
The costs incurred for a general trading license in UAE will depend on several factors. The total charges for the same will vary from AED 25k to 40k. The charges for renewal of the license from the second year onwards are 15k (as on date). The authorities may amend the fee from time to time. Therefore, you may consult a business setup service to know about the latest charges for a general trading license in Dubai and changes in procedure.
The competent authority has also stipulated a minimum capital requirement Dubai Mainland Limited Liability Companies. They have to either submit a financial statement substantiating the claim or reflect it in the Memorandum of Association (AOA).
Advantages of General Trading License
A general trading license offers great advantages for entrepreneurs. It is the best option if you are considering business activities across the country, on varying products.
- Trading of up to 10 different products, excluding regulated goods
- Approval to export, import, and re-export
- Permission to trade around the country, without any limitation
- Optimal possibility for extensive growth
Kiltons Business Setup Services LLC are here to help you get a general trading license without any complications. Our professionals will prepare the documents, advise you about the office and commercial space at the right location, accomplish the approval process, and obtain a trading license for you in a specific timeframe. We have more than two decades of experience and expertise in the field. Kiltons is at your service on any kind of support you need concerning setting up, obtaining a license, and carrying out business activities in the UAE.
Talk to our professionals now.
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